It’s white and blue, has an app, and sells coffee. What brand is it?
If you’re Malaysian, you might be inclined to say ZUS Coffee. But those in China might think you’re referring to one of the country’s 18,360 Luckin Coffee outlets. Yes, you read that number right.
I’m writing this with a cup of Luckin Coffee’s velvet latte in hand, ordered after a five-minute battle with the Luckin Coffee app I was forced to download.
When approaching the barista some 10 minutes earlier, she had pleasantly asked, “Can I help you?” rather than “What can I get for you?” After asking for an iced latte, she told me I had to download the app.
“Sure,” I replied, unaware at the time that it was not a suggestion so that I could get the RM2.99 drink deal, but rather a command, as they themselves cannot order for me.
It appears that Luckin Coffee is not just a tech-enabled coffee chain, but a tech-enforced one.
Its mobile-first, technology-driven approach is the norm in China now, but admittedly, I wonder if it’s really all that friendly for Malaysian consumers. Is it just a matter of getting used to it? Do I want to get used to it?
I can see how its enforcement of the app would bring a high volume of downloads, but could it also have adverse impacts? To be honest, as I stood there trying to link my phone number to my new account, I had half the mind to leave and go to ZUS instead.
And I’m not the only one.
“Ma de, dian ge dan zhe me ma fan,” someone said as he passed by me, leaving the shop with his friend. Damn, it’s so troublesome just to place an order. How curious, I thought. By his accent, he sounded like he was from China himself.
But perhaps he had hit a snag if he didn’t have a local number to create an account. It took me some four attempts before I got the verification code.
It’s still early days for the brand in Malaysia, I suppose, so I’m inclined to give it a little bit of grace. At least the RM2.99 deal for first-time users is pretty attractive.
Meet the Malaysian operators
For those who have no idea what Luckin is, lucky for you, here’s a quick explanation.
Luckin was founded back in 2017 in Beijing, bagged a lot of funding, ran into an accounting scandal that led to them filing for bankruptcy, but then emerged from it in 2022. In 2023, they opened in Singapore, their first overseas market, then earlier this year, they ventured onto Malaysian soil.
In Malaysia, Luckin Coffee’s operator is Hextar Industries Berhad’s subsidiary Global Aroma Sdn Bhd (GASB). It owns exclusive rights to develop, open, and operate coffee shops under the Luckin Coffee brand nationwide.
If Hextar Industries doesn’t ring a bell, it’s a group that primarily deals in the manufacturing and distribution of fertilisers, turnkey products for the quarry and mining industry, and equipment rental and lifting solutions. Yeah, not really coffee-related.
But it doesn’t necessarily matter what they do—as long as they follow the proven recipe that has worked for Luckin in China.
Grab and please go
One big thing about Luckin is that the number of seats, at least at their current array of shops, is extremely few. And none of the seats really accommodate the working crowd. I have to sit with my laptop on top of my lap. Blasphemy.
Paired with the fact that you are forced to place your orders online, Luckin doesn’t intend to be a third space of any kind—just a convenient spot to get decent coffee.
Which brings me to: Is the coffee any good?
I ordered the velvet latte, which Google claims is “known for its creamy and silky texture, achieved through the use of Hokkaido milk.” Certainly, the drink tastes pretty darn delicious, albeit a bit too sweet, despite me already opting for the “less sweet” offering.
The array of drinks is pretty attractive, with the coconut latte being their bestseller. I’d say that this is fairly unique in the sense that it isn’t a top product for competing chains.
However, they don’t appear to have any hot foods, which once again solidifies the “grab-and-go” concept.
There are no non-dairy options just yet, though, so to my lactose intolerant friends, you’ll have to sit this one out right now (or bear the consequences).
Competition is good for consumers
There’s a lot of parallels to be drawn between ZUS and Luckin. For one, the app’s UI and features are kind of similar. ZUS’ one is currently a lot more fleshed out, though.
And dare I say, the coffee of both chains are of the same-ish calibre, but in terms of product range, ZUS has them beat right now too.
Luckin has a pretty competitive price, especially right now as it’s offering much of their menu at a discounted rate.
That said, I still do have that slight streak of patriotism in me, and would much prefer supporting our homegrown blue-and-white coffee brand.
With how Luckin has mushroomed across China, there’s a chance the same will happen here in Malaysia. If Luckin really hones in on localising their branding as well as their products, I could see a future where it dominates our market.
I mean, just look at how China’s Mixue has boomed nationwide. Their small, efficient kiosks have made them a go-to destination for desserts and drinks. I could see the same working for Luckin.
Should established brands such as ZUS, Gigi, or even Starbucks be worried? Well, kind of. But ultimately, having more options and competition is good for the end consumer. It’s more options for us, and hopefully forces each brand to really put their best foot forward.
Featured Image Credit: Vulcan Post
